Sharekhan's research report on CESC
Q3FY22 consolidated PAT remained flat y-o-y at Rs. 329 crore as benefit of higher short-term power rates at Dhariwal (PAT up 79% y-o-y) and steady standalone performance was offset by a sharp 90% y-o-y decline in profit from Rajasthan DF. Standalone power generation grew by 2.7% y-o-y to 1,242 million units but power sales volumes was muted with growth of 0.7% y-o-y to 2,173 million units as demand from schools was still below pre-COVID levels. Improvement in financial performance of Rajasthan/Malegaon DFs in FY23 would boost consolidated earnings. Potential higher profit/RoI (target of Rs. 100 crore PAT and RoI of 12% over next 4 years) at Chandigarh discoms to create value.
We maintain a Buy rating on CESC with an unchanged SoTP-based PT of Rs. 105 as valuation seems attractive at 1.1x its FY2023E P/BV and stock offers a healthy dividend yield of 5-6%.
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At 17:30 CESC was quoting at Rs 92.55, up Rs 0.30, or 0.33 percent.
It has touched an intraday high of Rs 93.85 and an intraday low of Rs 91.70.
It was trading with volumes of 396,619 shares, compared to its thirty day average of 183,482 shares, an increase of 116.16 percent.
In the previous trading session, the share closed down 0.65 percent or Rs 0.60 at Rs 92.25.
The share touched its 52-week high Rs 102.45 and 52-week low Rs 57.50 on 19 October, 2021 and 19 April, 2021, respectively.
Currently, it is trading 9.66 percent below its 52-week high and 60.96 percent above its 52-week low.
Market capitalisation stands at Rs 12,268.15 crore.
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